HELLO I have just received a letter from my hoa attorneys office

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HELLO I have just received a letter from my hoa attorneys office indicating that my condo is being sold on Aug. 15 th. !! I also received countless letters from attorneys indicating I can stop the forclosure/auction by acting now and filing for bankruptcy. Is their any truth to this?

Yes, you can stop a foreclosure by filing a Chapter 13 bankruptcy -- at which point the bankruptcy court will take all of your debt and put it into a 5 year repayment plan to the lender and the HOA as secured creditors and any other unsecured creditors that you have (credit cards and debts like that are unsecured creditors). The key to being able to survive in a Chapter 13 bankruptcy is that you will have to pay your current mortgage and HOA fees going forward and then make a monthly payment for 5 years that will payoff the full balance of all secured creditors that you owe money to (such as a mortgage lender and the HOA for fees) and a partial payment of the balances of your other unsecured creditors. This is the only type of bankruptcy that will save your home. If you file a Chapter 7 bankruptcy - which is a complete wipe out of all past debts -- the mortgage lender and/or HOA can apply to the bankruptcy court to sell the house to be paid for all of the outstanding money they are owed and the bankruptcy court will grant that permission. In order to use the CHapter 13 filing to stop the bankruptcy you must get an attorney and make a filing to the court at least a week or so before the foreclosure date so that the bankruptcy filing can be processed and the HOA notified to stop the foreclosure auction until further notice of the bankruptcy court. My suggestion is to contact your local county bar association and ask them for referrals to several bankruptcy attorneys in your area and then you will have to call a few of them and see who can file quickly on your behalf and without a lot of money upfront from you (the attorney will want some fees paid before the bankruptcy filing).

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Please let me know if you have further questions.

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MARY

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Thank you for your expertise. Forgive my ignorance but I'm not sure I understand you completely . Are you saying that filing for bankruptcy will not clear my debt with hoa and simply give me nothing more then some kind of monthly installment plan for the 12,000 dollars owed?

Unfortunately that is correct. Because any mortgage lender and your HOA are SECURED creditors (they have liens on your condo) -- which means that they have the right to be paid in full through the bankruptcy court if you want to keep your condo. You cannot wipe out that debt completely unless you give up the condo and declare Chapter 7 bankruptcy and walk away -- then the debt will be wiped out in bankruptcy and the HOA will be paid their back fees through the foreclosure.

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I truly wish I could tell you something differently here, but that is what happens in a bankruptcy. But if you are that close to losing your condo and you truly want to save it, then it may be the only option that you have.

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MARY

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Please press the 3rd, 4th or 5th smile face below so I will be paid for my time. I am paid nothing unless you press a positive rating below (we do not receive paychecks). Pressing the 3rd, 4th or 5th smile face below will NOT cost you any additional money -- it simply acts as a trigger to Just Answer to pay me for my time. THANK YOU VERY MUCH !!!

I will tell you that...the things you have to go through to be an Expert are quite rigorous.

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